mortgage loan modification

My husband has lost two jobs in the past two years it isnt because he isnt a good worker it is because his line of work is closing down.
anyway we are two months behind.
He has another job but we are behind. and we both are looking for additonal work. we have a child that is about to have surgery so one of us will have to be with her at all times.

the mortgage company said if we send in proof his pay has went down we may be able to do a loan modication but i just do not think so. what are the chances?

Please no mean answers i am so stressed.
He is a hard working man…i just cannot think of losing our home…because it will be so hard to find something else. like i said no mean answers please….we live right…love our children work hard…all i can say is why

I can't answer for your bank but I think with the way the economy is going right now you have a good chance most financial institutions are trying to work out things with people.

Go to them talk to them and try to work something out. They do not want your house, they have way too many already. You have nothing to lose by trying to work with them, you do have something to lose if you don't, your home.

Right now financial institutions are really trying to work with people, they can't afford not to.

Good Luck to you and your family.

The loss mitigation department are rude people. (damn)

1.) the lenders are going to loose money on the loan.
2.) they hear the same excuses all day long.
3.) they are overloaded with files of bad debt that they have to handle every day.
4.) the homeowner is the bad guy in this situation.
5.) most homeowners are not presenting a win-win situation…they just want the bank to look the other way and let the homeowner take advantage of them.
6.) most homeowners don't really know what they're talking about when they call, they are not professionals.

If you want to get some respect from the loss mitigation department then have something worthwhile to present, a situation where the bank can win too. Otherwise, what reason do they have to be nice?

The other way to get some respect is to have a powerful reason for them to want to negotiate with you. My guess is that you could if you bought/refinance your home within the past 3 years you could qualify for an extended Right of Rescission under the Truth in Lending Act. That means you could cancel the loan and the lender would have to pay you back all your mortgage payments and you would give them the house back…or the lender would have to be very serious about negotiating with you in the first place.

I'm getting mixed messages from people claiming they know what they are talking about?

You need to be in the green. Basically you are qualifying for a loan again, you obviously need to be able to pay the mortgage otherwise they would rather just foreclose now and get it over with.

I fell behind in my payments and need to modify or face a possible foreclosure. Someone is coming tomorrow to take pictures–inside and out to help with the evaluation. According to HUD this is normal procedure, but I'm skeptical.

The Lender needs to order an appraisal to determine the value of the property to determine if it is in their best interest to enter into a loan mod. Typically these appraisals are done through independent contractors and not necessarily someone who works for the bank.

i know little about what a loan modification does, from what i've heard i can only benefit from it but i am afraid there are bad things that come with it, if anyone can tell me more about it i'd appreciate it. also i'd like to hear about how much it costs?

I dont know your loan type. But this is basically how it works.

The main insurers of your loan, FHA, VA, Fannie Mae, Freddie Mac cut you a deal. They say you are about to lose your home. You walk away with nothing or you get this. The devil is in the details.

Fannie Mae tells your servicer cut their rate to 5%. They say we cant make money, Fannie mae says they lose their house if you dont. So they modify your loan. Lets say you owe the bank 200K The home is worth 150K. They lower your interest and your payoff to 150K so you stay in the home.

Say 5 years from now your home is now worth 300K. That 150K difference isnt yours, you refinance or sell the bank takes their money. There will be a ballon. Basically you get to modify your loan. If you sell and cant come up with the difference you can walk. If you have equity its gone.

If you want to stay in your house and not have a foreclosure then its a great thing. If you want to build equity then you really cant. But then again you cant build equity in a home that you wouldnt have had anyway.

They costs should be nothing Fannie Mae pays them 800 dollars to do it. Dont hire somebody to do something that you can do yourself for free. And you have to be 3 months behind. Dont get behind to do it, the lender isnt required to give you a modification.

Fannie Maes Plan
http://www.fanniemae.com/newsreleases/2008/4557.jhtml;jsessionid=1Y3HE1WIOLKXVJ2FECHSFGA?p=Media&s=News+Releases

Any advice here would be much appreciated!

I am currently going on the third month of not paying my mortgage payment. My husband and I seperated…I still work full time…I just do not make enough money. I tried so hard to work with my mortgage company months ago, they could have cared less. SO…I figured instead of always being behind and worrying if my heat would get turned off… I did not make the last two months of payments. I paid my overdue utilities instead. (Please do not comment with critisism or judge me…I am a single mom and have no debt other than my home.) I have the option of moving back home with my parents and starting over…and let the house go. While foreclosure is taking place I have about a year to save all my money and move. Honestly, I do not want to let it go and lose what credit I have left, but at this point I cannot afford not to. (house is not worth what I owe on it…I can not even sell)

Okay so sorry that part took a minute to tell. Now my situation is this: I got today in the mail an offer from my mortgage company to modify my loan. (now they want to help me?) They propose to lower my monthly payment substantially by lowering my current interest rate (8% fixed now) to 3% for the first year. After that it will go up yearly no more than 1% until it is capped at 5.125%. Sounds good right???Except the life of my loan is now 40 years instead of the 24 I have left now. If this was it, I would not think so bad of the deal, but the other part is (if Iam reading this correctly?…Iam no loan officer) The maturity date of the loan will not change…meaning I will then owe a HUGE payment(what they call a ballon payment). This is due when the original date would have been for my loan to originally be paid off. It is over 40,000. So I think what they are saying is they will modify my loan and it will include affordable payments and lower interest rate. But, because it will not be enough to pay off the loan at that time, I will then need to make that last big payment to pay off the loan. I hope I understand that right? My question is could I sell the house before that time and pay it off that way? What if I do not…then I have defaulted on the loan when I can't come up with the ballon payment? And how does this add up to being a 40 year mortgage if the payoff is due before 40yrs? Is this my only option in "loan modification"?

Sorry it was long, thank you for reading and any help would be much appreciated! If you are a loan officer/realator/work for mortgage companies and need more info than I am giving here please e-mail me at julieannesmall@yahoo.com… Thanks Again!!!!!!!!!

okay, read it all alot of mortgage companies are waiting until people are past due before they are willing to work with them–don't understand why but, it's how it works… I would take the offer if it's a monthly payment you can afford–if in fact there is a balloon payment due at the end of your term, you can always refinance that amount and the payments would be alot cheaper then what you are used to paying…and of course you could still sell at anytime when you are ready and able…best of luck to ya~~

is this a morgage program that will help ot it's another scam??
has sombody allready done this procedure and benefit??

It is a mortgage program that can help, but unfortunately there are a lot of scammers out there, so you have to be really careful of who you work with.

I have had several of my clients go through loan modification programs and they have either lowered their principal and/or lowered their interest rates permanently or for a designated period of time.

I am two months behind on a my mortgage and i have loan mod companys calling wanting to charge me $3000 and promising drastic drop in my interest rate without refinancing. I dont have the money to pay them. please advise

NOPE, ignore them.
TALK to your lender.
IF you have decent credit, a good payment history up until now, and a reason you stopped paying, they mad be willing to do a loan modification. TALK to more than one person at lender, to supervisors, to find all you can about this option.
You should not go to 3 months behind on your mortgage. Another option is loan forbearance where you pay only interest, no principal, for short period of time. ONly works if you have some equity in home, otherwise your payments are all interest anyway.
Sometimes it helps if you go to attorney or nonprofit credit counseling company (HUD approved) to negotiate with lender. loan modification means changing the interest rate and thus lowering your payments. There is talk of new low fixed rate mortgages being available for refis and new purchases, but credit requirements and equity will be required.

These may be the lowest mortgage interest rates…ever!

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